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20, Dec 2012

SALES MANAGEME

NT TERM REPORT

GETZ PHARMACEUTICAL

TABLE OF CONTENTTitle Page no

Acknowledgement 2Executive Summary 3Situation Analysis 4i- Short History of Company 4ii- Product Portfolio 4-5Mission and Vision Statement 6Opportunity and Issue Analysis 7i-Swot Analysis 7-8ii- Analyzing Opportunities 8Objectives 9i- Target Formulation 10ii- Methodology 10iii- Planning progress 11Problems or Issues 12i- Nature of the issue or problem 12ii- The current practices/policies ,procedures 13iii- Understanding the needs 13Action Programs 14i- Development strategies 14ii- Action Plan 14Financial Plan 15i-Budget evaluation Planning 16ii-Mile Stones 17Controls 18Corrective Mechanism 19Feedback Mechanism 20

ACKNOWLEDGEMENT

“We 0we 0ur pr0f0und thanks and earnest gratitude to Almighty Allah, most Merciful, Who blessed us with fortitude, strength, capability and divine help to complete this piece of work”.

We are greatly thankful to our course mentor for Sales Management, Mr Hashim Jafferi, who provided us clear thoughts and a strong footing of understanding for the subject. He made the course an appreciated learning experience for all of us and made us grow as educated individuals. We would also like to thank our Bahria University, which is a great learning place with different academic and extra-curricular proficiencies, all contributing to our development as students. We would also like to thank to Naveed Bhatti Area manager and Abdul Rehman Territory managerLastly we would like to thank our fellow student for making this learning experience a systematically productive and enjoyable one.

Hopefully this plan will serve a good purpose.

Thank you,

Group Members:

Muhammad Ehsan

Mansoor Ilyas

Muhammad Waqas

Waqar Ahmed

Ahsan Abdul Qadir

Abdul Qadir

Hassan Ahmed

Farooq Memon

EXECUTIVE SUMMARY

First of all, we have given a brief history and introduction on Getz Pharma. Getz Pharma started

its operations in 1995. According to the IMS, Getz Pharma was ranked 195th out of 200 pharma

companies in Pakistan in the year 1995. Getz Pharma (Private) Limited has its head 0ffice in

Dubai, UAE, and plant 0perations based in Karachi, Pakistan. Getz Pharma is the largest branded

generic pharmaceutical company in Pakistan.

Then we move towards our main topic i.e. functions of sales department in Getz. In this report

we discuss opportunity and issue analysis, objectives, problems, issues, financial projections

etc. Our main emphasis is on sales. We also discuss how they train their field force to compete

in this very competitive environment.

Actually Getz’s main marketing function is to support their field force so that they can generate

revenues and bring more smiles and happiness on the faces of people who got treatment after

using Getz’s remedy.

SITUATION ANALYSIS

History:

Getz Pharma was originally set up in 1995 by Getz Brothers & Co. Inc. Getz Brothers & Co. dispensesfarming, biomedical, pharmaceutical, and mechanicalgoods and consumer products in more than twenty three countries in Asia and has a existence in these markets for the past 89 years.

Getz Brothers & Co. pays more than 5,000 people globally, having been originated in 1852 by a Prussian immigrant Joseph Getz and his three brothers in California. By the 1870s Getz Brothers were promoting medicines, food products, and consumer merchandises to customers in Hong Kong, Shanghai, Calcutta, and Madras.

At the time of its inauguration and creation in 1995, Getz Pharma employed 45 people, and had a small income base with no international tasks. Today Getz Pharma employs over 3,500 highly qualified people and has setups in South Asia, Asia-Pacific, Africa, Central Asia, the Middle East, andSouth-East Asia. In most of these countries Getz Pharma has a direct existence and is rated as the fastest emerging pharmaceutical company.

Product Portfolio:

MISSION & VISION

Mission:

Getz Pharma's mission is t0 devel0p, produce and market safe, effective and quality medicines and health care products that will improve the health and quality of life of men, women and children.

Getz Pharma pledges t0 pr0vide the highest quality manufacturing 0f health care products.

Values:

Respect for people:Our principals, employees and suppliers are the basis of our quality and service. As each shares resp0nsibility f0r Getz Pharma's reputati0n as a quality manufacturer and marketer, s0 each

deserves t0 be treated with fairness and dignity.

Respect f 0 r 0 ur business ass 0 ciates and clients: Getz Pharma seeks l0ng-term and transparent relati0nships with its business partners, and enters into all transactions with integrity and trust.

Focus on safe technology:Getz Pharma opts for technology that puts in real value to its products and services and that does not harm the environment.

Guiding Principles to achieve mission:

Recruit the best-qualified pr0fessionals and endorse on the basis of objective performance appraisals of each individual's ability and willingness to take additional responsibility.F0ster the individual and pr0fessional devel0pment of our employees by providing them continuous training of the best quality available.

OPPORTUNITY & ISSUE ANALYSIS

SWOT Analysis:

Internal and external environment both can affect the company and because of this every Company keep an eye on both factors. These two factors are also very important for strategic planning process. For this purpose we conduct SWOT analysis it gives complete picture of the c0mpany’s strength, weaknesses, threats and 0pp0rtunities.

Strengths:

Fastest growing company of the Pakistan in pharmaceutical. Diverse and vast brand portfolio. Emerging brand name Highly skilled and well trained sales representatives and medical managers. High numbers of brands which are market leaders in their respective classes for e.g.

Risek, Getryl, Lipiget, Nexum, Leflox, Rovista, Gabica, Fexet, Uniferon, Ribazole, Asacol, Celbexx, Gonadil-f, Advant.

Low turnover rate of sales force. Participation in social work Medical reliefs camps during Natural Disasters

Weaknesses:

Strict credit policy Less frequent sales training programs Slow pace of promotions in Sales team Lack of non monetary benefits Less research budget Lack of usage of technology by the sales force

Opportunities:

Some territories are still left untapped in reference to distribution Pakistan ranks 4th in diabetes and has a rising trend while Getz Pharma is the second

key player in anti-diabetes medication Technological development Merger with other groups New drug developments

Threats:

Transitioning Government policies are basic threats to the company. Frequent Increase in Taxation results in reduction of profit margin and fluctuation of

prices Government intervention in prices regulation of medicated products. Law and order situation in Pakistan which lead to decrease in sales of products. Getting higher Production and Raw material costs Political interference in localities forces firm to leave them untapped New market entrants trend is on increase Drugs side effects

Analyzing Opportunities:

Company have the strategy to keep on checking the upcoming opportunities and try to avail

those opportunities. Company has very effective and efficient management and sales force

through this they grab every possible opportunity. Getz Pharma planed properly in order to hit

new market or in order to introduce new products in market. For e.g., How much sales efforts

are necessary in order to avail the opportunity? How many numbers of sales force required for

the specific territory?

To create its presence in untapped areas Getz Pharma can hire incremental sales

personnel and acquire new distribution channels to cover those areas.

As the diabetes has a rising trend in Pakistan expansion in production facilities can

accommodate the rising demand of insulin

Company is planning to introduce sales force aiding gadgets in order to create, compile,

and retrieve sales data in real time efficiently and effectively

In case of new product development Getz Pharma is preparing to introduce new anti-

hypertensive medication in the coming days

In order to increase overall size of organization Getz Pharma is going for the merger with

Ali Gohar Pharmaceutical which an incremental player of industry

OBJECTIVES

Target Formulation:

The target of the company depend on the sales of previous year as explained in budgeting that October, November, December growth sets the trend and pace of the next year’s growth and sales people have instructions to maintain it.

Methodology:

Methodology for reaching the targeting and their target market includes knowing market potential by analyzer provided by company. By that analyzer sales team come to know what the market can actually consume and what is their share in market.

Data of expected forecast, sales people forecast, market trends and new market formation helps in making methodology for achieving objectives.

PROBLEMS AND ISSUES

Nature of issues or problem:

There are a number of problems that are faced by the sale team. Some of them are as

Sometime the area they have to visit is not safe. In this kind of situation some of the

sale person take a bold step personally and visit or the middle management person

accompany them to create their confidence.

Sometime the sale person gets in trouble and cannot attend the meeting he set

previously so if he has confidence in his management he would go and discuss it. At the

same time management also gave him a positive reply by understanding his issue and

asking someone else to visit the client.

Current Practice and Polices:

In past we used to give promotion to our employees on the seniority basis as the employee completes his six years of experience we used to promote him. As this process became slower and new vacancies were there and promotion was slow so thispolicy was changed and was lessen to four years. But still the performance of the company was slow so after conclusion we came up to the process of having test to evaluate each and every person who has completed the first criteria and can be the best person for that position.

But sometime if we can’t find the required seats then we look in the employees which have not completed their four years but have a good response in his field we will bring them up to face the challenges.

Another practice is to motivate the employees by having discussion with the management this will motivate them “that the boss is sitting and having a discussion with me” this will motivate and encourage them to do their best.

Another tactics which was used by the upper management was setting the target and ask their team to complete that target in the specific time so as a reward they would be send on a tour to Bangkok, Malaysia etc and this increase their motivation level a lot.

Understanding the needs:

Need of the employees should never be overlooked because if their needs are not fulfilled and they are not given a relaxing environment they can never perform. We try to give them a good environment and easy access to the management so that they can discuss their issues with them.

For example: Once a sales person had an accident and had to take leave for a month. Company understood his needs and supporting him decided to give him off for a month with his salary. Although officially only ten days leaves were granted. But later as a result that sale person became the asset for the company whenever they needed him he was there in his offs and with odd timings also he worked without complaining.

So understanding the agent needs gives company a good and loyal worker and off course good performance from him too increasing the company’s profit.

ACTION PROGRAM

Developing Strategies:

Upper management keep the check and balance on the sales per month and slowly and

gradually they increase their sale ratio and wider their market. They check where they are

lacking. When bringing up the new products to the market new strategies are discussed of how

to market, who would be their target customers and how to introduce it to the masses with its

awareness in detail.

In the beginning of every month a target is set by the management and is told to the middle

management.

Action Plan:

Here the middle management tells there Sale team the target usually increasing it by 20% from

the original so that they work hard and the target that they have got would be achieved easily.

Sometime if any issue persist and the team is not able to cope up and is getting disappointed so

to raise their spirit the middle management keep up some rewards or tell them the actual

target so too keep their Sale team in good spirit and confident.

To increase their sale the doctors are promoted and are send for the international conferences

by the company as well.

FINANCIAL PLAN

Budget Evaluation Planning:

Budgeting is a strong and foremost part of the company for sales department. There are no fixed financial formulas exist to appropriate funds. Budgets need for following expenses in sales department.

On the same time budgeting also depends on contribution of a territory and individuals in those territories.

Budgeting Method:

There is a simple formula in Getz Pharma for calculating budget for particular territories and individuals for sales force.

Company demands growth = More than previous sales

Depends on your contribution and territory contribution

Individuals contribution = individuals achievement/regional achievement * 100

If the financial officer gets the budget of some billions, he will multiply that budget with the contribution of each territory and individuals. The figures he will get is some millions and he will allocate it for every month, for example Rs. 833,333. This budget will include:

Marketing research Advertising Sales promotion Sales support Sales managers’ salaries Sales managers’ commissions Salespeople salaries Salespeople’s commission

Budget Allocation:

Now the policy of Getz Pharma is they allocate the amount in four quarters of year. And after each quarter the budget will increase slightly from previous budget.

1st quarter budget – 22%

2nd quarter budget – 24%

3rd quarter budget – 26%

4th quarter budget – 28%

In these way sales people incentives increases as well their motivation level too.

Sales usually shoots up in October, November, December. And because of these months, next year’s good pace also gets develop. Sales force gets motivated that his incentives and sales are increasing next year.

In the 1st quarter sales people will try to do the maximum sales so that he won’t face problems in the end of the year, so in this way sales increases from the start of the year and seniors tries to maintain this pace. This process need to be monitor by bosses

Mile Stones:

Prisa (Prasugrel):Getz Pharma introduced the first prasugrel of Pakistan “Prisa”. It is the latest antiplatelet approved by FDA for the management of patients with Acute Coronary Syndrome.

Amclav (Co-amoxiclav):Dec 2011 marked a new milestone for Getz Pharma as the first penicillin product of Getz Pharma; Amclav was launched in Pakistan. Amclav is the first penicillin product manufactured at the new state of the art penicillin manufacturing facility.

Diora (Diacerein):Diora (Diacerein) is an anthraquinone derivative that is used in osteoarthritis. Diora (Diacerein) was launched in the market of Musculoskeletal products in November 2011, used for the treatment of arthritis. Furthermore, the addition of Diora has also resulted in enrichment of Getz Pharma’s orthopedics portfolio.

Basagine (Insulin Glargine):Basagine (Insulin Glargine) is a long acting insulin analogue, launched in September 2011.At the time of its launch, only one Insulin Glargine was available in Pakistan’s pharma industry.

Getofin (Ceftriaxone): It was launched in July 2011. The launch of Getofin resulted in enrichment of Getz Pharma’s antibiotic portfolio.

Zurig (Febuxostat): Getz Pharma launched Zurig in Pakistan on 4th May, 2011. Febuxostat has been studied and evaluated in multiple clinical trials linking more than 4,000 subjects, in some for up to 5 years.

Trevia (Sitagliptin): Trevia (Sitagliptin) is indicated mainly for the management of Type-2 Diabetes Mellitus was launched in 22nd Feb 2011. The tag line of the campaign was “The first FDA approved DPP-4 inhibit0r”. This 0perati0n enf0rced the secure use 0f the drug and included posters, presentations and foreign speaker sessions. Trevia has now become one of the largest brands in the market.

Amtas (Amlodipine + Telmisartan):Amtas is a very healthy addition to the Getz Cardio metabolic portfolio which already has innovative brands like Tasmi, Co-Tasmi , Advant, Nebil, Prisa, Lipiget & Rovista.. Indicated in hypertension alone or in combination with other antihypertensive agents.

Solifen (Solifenacin succinate): Solifen, the first solifenacin succinate of Pakistan was launched on 17th June, 2010 This has been the second mega launch in Urology segment. All notable urologists across Pakistan welcomed the launch of Solifen and recommended this molecule. Solifen is now a market leader in OAB market segment.

CONTROLS

Corrective Mechanism:

SFPI (sales force performance indicator):It is to monitor, identify and evaluate the performance of sales force. It is online software in which the sales force enters their daily sales.

Sales Leadership Planner Book:The district sales manager randomly visit sales visit the market and evaluate the sales force performance by mentioning remarks in sales planner book. If there is any unfavorable circumstances then he first find the root cause and take action on it. He also monitor that all the sales performance have been done on ethical way if anyone sales person is found to be involved in unethical practice then he is fired no second chance as Getz Pharma has strict policies and regulations.

Feedback Mechanism:

At the start of week, each sales person drafts a sales order report, and provides it to the distribution manager. This report holds the details about the orders booked, recoveries made, complaints received and information about the competitors’ activities.Based on the orders received, Distribution manager dispatches the supplies to the respective customer. If the Distribution manager feels that the respective customer delays the payment and has pending bills to disburse, he first informs the Proprietor. If the Proprietor approves the order, then the order is dispatched

Sales reports prepared by the sales person

Distribution Manager analyze the Sales

reports and decides whether to directly dispatch or take an

approval from proprietor

If Proprietor approves a customer with short payments (in case of customers with good credit history skip this

step)

The order is loaded and dispatched to the

customer

Procedural Mechanism: